Welcome to the exciting and ever-evolving world of the High Tech industry. In this course, you learn how to speak about the High Tech Software industry in the language of your customer.
What Is the High Tech Software Industry?
The High Tech industry focuses on developing and manufacturing cutting-edge technological products or offering advanced services, such as electronics, software development, computers, robotics, artificial intelligence, biotechnology, and more. These industries are characterized by a high level of research and development activity, rapid product evolution, and innovation.
We're delving into an industry valued at a staggering $4 trillion annually, rivaled only by the GDPs of major economic countries/regions like Germany, Japan, China, and the U.S. This industry boasts over 30,000 companies across the globe, each playing a part in the rapidly evolving landscape of technology. However, what you might not expect is that most of these companies have fewer than five employees. With 90% of High Tech final products and 80% of components being made in Asia, the region has become the central hub for manufacturing and production in the industry. However, the industry is recognizing the risks associated with such concentration and is actively shifting to reassuring measures with significant government sponsorship on the various chip acts that have been approved in Europe and the U.S.
Megatrends in the High Tech Industry
These are trends that our customers are inevitably facing, and which are driving their strategic priorities. How well High Tech companies are able to address these priorities will decide the course of their business.
Lesson Summary
- High Tech Megatrends: Four megatrends shaping the High Tech industry include its ubiquity across other industries, the prevalence of software in all products and services, changing consumption preferences, and a focus on resilience.
- High Tech Software Segments: The High Tech Software industry consists of five segments: semiconductors & components, contract manufacturers, original equipment manufacturers (OEMs), electronic manufacturing services (EMS), and software.
- Industry Transformation Trends: Key trends in the industry include competition for skilled talent, reshoring of manufacturing, design revolution, shift from 'just-in-time' to 'just-in-case' manufacturing, and heavy investment in Industry 4.0 technologies.
- Business Model Evolution: Businesses are focusing on providing comprehensive solutions over physical products alone, undergoing business model evolution, and emphasizing environmental, social, and governance (ESG) impacts.
- Industry Resilience Strategies: Software companies in the industry are managing the sector's dynamic and volatile nature by turning to comprehensive revenues management, cloud business solutions, and embedding software into products to increase resilience.